There was debate about the June 30 deadline regarding the liquidity that was going to be acquired. Theoriginal proposition was that if Puerto Rico had saved enough by June 30 that there would be no danger, however the proposition was not actually part of the deal according the board. It was stated that the liquidity was only part to a much bigger picture and that in order to save the bonus, and avoid the furloughs, that there must be formal implementation plans to enact the turnaround.

The notion of cutting the bonus and introducing the furlough came through the board’sintroduction of certain amendments to the fiscal plan on March 13. They voted unanimously to approve the budget with the additional amendments in the hopes that these measures would improve the islands’ fiscal problems. However as of June 27, 2017, theboard has rejected Puerto Rico’s budget based on the fact that the $200 million in liquidity is not there. The $120 million that Governor Rosselló had previously stated was there, but the Board insists that it is not enough.

These instances of conflict are likely to continue in Puerto Rico since the tensions between the Rosselló administration, the Financial Management and Oversight Board, and the creditors are rising and everyone is feeling pressure from every side. The Rossello administration is working to create a new budget and get the approval of the Board in an effort to diffuse tensions and create a better financial path for Puerto Rico.

About The Author

Sarah is a graduate of Vanguard University with a major in communications and public relations. She works in the California State Capitol on legislation in the Senate and has also done major donor fundraising on several campaigns while working in Washington D.C. during the summer of 2016. She is a former Puerto Rico Affairs Senior Correspondent at Pasquines.